DRIVIN G ROWTH - Dr. Reddy's

AURIGENE WILL BUILD SKILLS IN AUTOMATED MEDICINAL
CHEMISTRY, STRUCTURAL BIOLOGY AND STRUCTURE BASED
DRUG DESIGN. THE IDEA: TO PROVIDE PRODUCTS AND SERVICES
THAT ELIMINATE BOTTLENECKS IN THE DISCOVERY PROCESS.
(iii) Aurigene at Bangalore and Boston.
That will set in motion R&D synergies
which are envisaged in Chart C.
human resource
A COMPANY IS ONLY AS good as its
people. This adage is particularly true for a
knowledge-based, discovery driven
pharmaceutical company like Dr. Reddy’s.
The total manpower strength of Dr. Reddy’s
group is 5,500, of this over 500 are foreign
nationals, and it spent almost Rs. 1,006
million on salaries, wages and employee
benefits. There are over 500 scientists at
Dr. Reddy’s, of whom 260 focus exclusively
on discovery research. This includes 77
PhDs employed by the Company.
LEADERSHIP DEVELOPMENT
IN ORDER TO IDENTIFY new team
leaders and potential leaders who would
run the company over the next decade of
intense change, Dr. Reddy’s undertook an
extensive Leadership Development
Programme and Management Development
Programme. The Company also conducted a
large scale initiative to improve critical
leadership skills in coaching, mentoring and
providing feedback.
EMPLOYEES STOCK OPTION
SCHEME
EMPLOYEES WHO substantially
contribute to corporate growth should not
consider it attractive to remain but also
benefit from the wealth generated by the
company. With this aim in mind, Dr.
Reddy’s introduced Employee Stock Option
Scheme (ESOS). It is administered by the
Compensation Committee of the Board of
Directors. The scheme is applicable to
employees and Directors of the Company
and its subsidiaries. It is not applicable to
promoter Directors, promoter employees
and persons holding 2 per cent or more of
the outstanding share capital of the
Company.
In 2001-02, the Company granted
124,500 options to three employees of its
overseas subsidiaries. The vesting period for
these options varied from 12 months to 36
months. The exercise price was calculated
by taking the weighted average of closing
stock prices of the Company on the BSE for
a period of 30 days prior to grant, which
was Rs. 977.30 per option.
In the first quarter of 2002-2003 the
Company has granted 259,400 stock
options to the existing employees, based on
the results of the performance appraisal
process completed in April, 2002.
DR. REDDY’S LABORATORIES LTD. | MANAGEMENT DISCUSSION AND ANALYSIS | ANNUAL REPORT 2001-2002
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